2014 Tax Season
Considerations —
Head to Head:
Traditional Tax
Workflow vs. Digital
Tax Workflow
Hosted by:
Accounting Web
Date:
November 21, 2013
Our World
 Government entities in the United States expect to:
• Collect $1.9 trillion from income taxes in 2013
• Process 240 million tax returns
 Preparing these returns correctly is very difficult
• In 1913 an individual tax return (Form 1040)
 Was 3 pages long
 And had one page of instructions
2014 Tax Season Considerations
Our World
2014 Tax Season Considerations
Our World
 Government entities in the United States expect to:
• Collect $1.9 trillion from income taxes in 2013
• Process 240 million tax returns
 Preparing these returns correctly is very difficult
• In 1913 an individual tax return (Form 1040)
 Was 3 pages long
 And had one page of instructions
• 100 years later, an individual tax return
 Can be hundreds of pages long
 And refer to 3.7 million words of instructions
• 7.6 billion hours per year are spent complying
 60% use a tax professional due to complexity
2014 Tax Season Considerations
History
 CCH was founded in 1913 to serve income tax preparers
• Original focus was income tax publishing products
 Branched out in 1970s to tax preparation service bureaus
 In the 1980s entered the tax software business
 Other software offerings over last 15 years
•
•
•
•
•
Financial statement compliance software
Firm management software
Document management
Client collaboration
Paperless solutions
2014 Tax Season Considerations
Current Challenges of the Profession
 Economic conditions have put downward pressure on fees
• Clients are only willing to pay for perceived value
• Which places a premium on efficiency
 Shortage of skilled labor
• 75% of CPAs will be retirement age by 2018
• There is significant competition for talent
 We live in a litigious society

• Firms must not only make profit but must protect it
• Regulations are strict - clients are intolerant
Client expectations are high
• Digital clients expect digital firms
 Highly responsive
 Who take advantage of the best technology
2014 Tax Season Considerations
Digital Firms Utilize Digital Workflows
Engagement
Letter
• Post letter to
Portal.
• Client receives
notification.
• Client signs,
scans, returns.
Review Tax
Return
• Use powerful
Tax digital
review tools.
• Obtain add’l
info via Portal.
Tax Organizer
• Post to Portal.
• Client
completes &
returns with
source docs.
• Stored in Doc.
Deliver
Review Copy
• Digitally
create return
& attachments
• Generate 8879
& post to
Portal.
Organize
Source Docs
• ProSystem fx
Scan
identifies,
bookmarks, &
extracts 1040
information.
eFile 1040
• Receive 8879
via Portal.
• eFile 1040.
• Client & Firm
receive eFile
notifications.
2014 Tax Season Considerations
Prepare Tax
Return
• Import 1040
data.
• Complete 1040
onscreen
using custom
digital tools.
Deliver
Finished 1040
• Deliver 1040,
workpapers, &
invoice via
Portal.
• Real-time
status update.
Polling Question #1
Which step of the 1040 workflow do you feel your firm is struggling with the
most?
1)
2)
3)
4)
5)
Obtaining & Organizing Source Documents
1040 preparation
Obtaining answers to outstanding questions
1040 review, delivery & e-file
Storing documents & finding them later
2014 Tax Season Considerations
Workflow Video
2014 Tax Season Considerations
Polling Question #2
After watching the video, which area of your practice would most benefit
from the solution shown?
1)
2)
3)
4)
5)
Obtaining & Organizing Source Documents
1040 preparation
Obtaining answers to outstanding questions
1040 review, return delivery & e-file
Storing documents & finding them later
2014 Tax Season Considerations
Polling Question #3
What primary method do you use to obtain answers and additional source
documents from clients?
1)
2)
3)
4)
5)
Telephone or client visit
US Mail / FedEx / UPS
Email
Portals
Other
2014 Tax Season Considerations
Polling Question #4
What is your primary pain point around reviewing returns?
1)
2)
3)
4)
5)
The endless circle to & from the preparer
Being able to charge for review time spent
Level of preparer knowledge
All of the above
None of the above
2014 Tax Season Considerations
Recap
 Challenge - Economic conditions have put downward pressure on fees
• Are you using available technology to be as efficient as possible?
 Challenge - Shortage of skilled labor
• Are you leveraging technology to use your most valued resource most
effectively?
 Challenge - We live in a litigious society
• Are we taking advantage of technology to minimize risk?
 Challenge - Client expectations are high
• Do our clients perceive us as up-to-date?
2014 Tax Season Considerations
QUESTIONS?
2014 Tax Season Considerations
Thank You
Mark Ryburn, C.P.A.
Product Line Manager – Tax Software
CCH Tax & Accounting North America
877.237.9940
Mark.Ryburn@WoltersKluwer.com
CCHGroup.com/Axcess
2014 Tax Season Considerations
2014 Tax Season Considerations